From just $5 million in FY2024, revenue from this business segment jumped to $15 million.
With Singapore's push for more AI-related training, the company is set to enjoy further growth here, note the analysts.
Also, the company was able to improve its operating margin by 5 percentage points to 39% in FY2025.
Meanwhile, it enjoyed healthy growth in its core business of providing accounting and HR software, with most of the new customers from India and Malaysia.
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Info-Tech is eyeing further expansion into the Middle East via Dubai.
With stronger contribution from services and better cost management, Kande and Lim have raised their FY2026 earnings estimate by 22% and FY2027;'s by 18%. On the other hand, they have applied a valuation multiple of 16x FY2027 earnings, from 16x FY2026 so as to be better in line with peers in this region.
The company plans to pay a final dividend of 1.95 cents, which, on top of the interim dividend of 1.55 cents, would imply a "decent" yield of 4%.
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Key re-rating catalysts include higher-than-expected customer additions, government grants to support SME adoption of digital tools.
On the other hand, downside risks would include heightened competition and increased SME closures.
Info-Tech Systems shares changed hands at $1.03 ahead of the lunch break, down 1.9%.
